Taiwanese electronics giant Foxconn will invest $500 million to set up a new plant near Hyderabad which will generate as many as 25,000 jobs in the first phase of the project, Telangana industries minister KT Rama Rao announced today.
The Foxconn plant will come up at Kongar Kalaan in Ranga Reddy district.
“Demonstrating the ‘Telangana Speed’, I am happy to announce the groundbreaking of the first of Foxconn’s plants in Telangana at Kongar Kalaan today. With an investment of over $500M it shall create 25,000 direct jobs in the first phase,” the minister, who is also the son of Telangana Chief Minister K Chandrashekar Rao, said in a tweet.
A joint statement by the Telangana government and Foxconn said the new facility “is a promise to continue delivering world-class products to the markets, and a milestone for Foxconn Interconnect Technology’s global expansion strategy”.
Foxconn is the world’s biggest contract electronics manufacturer and a main assembler of Apple iPhones. This is the second investment in a new plant in India that Foxconn has announced this month. On May 9, the company had announced its purchase of a sprawling 300 acres of land near the Bengaluru airport to set up anew factory in which it was investing $700 million.
Both Foxconn and Apple are seeking to move away from China and create alternative supply chains as the Communist giant stands alienated due to its military muscle flexing in the South China Sea and dubious role in the spread of Covid-19 pandemic that destroyed lives and livelihoods across the world.
Foxconn has been manufacturing Apple smartphones in India since 2019 at its plant in Tamil Nadu.
Two other Taiwanese suppliers, Wistron and Pegatron, also manufacture and assemble Apple devices in India.
Apple has been making its own push into India and chief executive Tim Cook himself visited the country last month to its first two retail stores in Mumbai and Delhi.
Apple said last September it would manufacture its latest iPhone 14 in India, just weeks after launching the flagship model. India currently accounts for seven percent of Apple’s iPhone production. The US tech giant is keen to expand its footprint in the fast-growing Indian market.
More electronics manufacturing companies are setting up base in India as Prime Minister Narendra Modi’s Modi has given a big push to his “Make in India” strategy. The productivity linked incentive (PLI) scheme launched as part of this plan is proving to be a major attraction for electronics manufacturers.
iPhone maker Foxconn investing $500 million in new factory near Hyderabad, to create 25,000 jobs